9911796707
TMI Blog2022 (9) TMI 888X X X X Extracts X X X X X X X X Extracts X X X X ..... price to a single customer - HELD THAT:- It is observed from the Customs Tariff Act 1975 that Chapter 84 covers machinery and mechanical appliances and parts thereof and heading 8415 covers Air conditioning machines, comprising a motor driven fan and elements for changing the temperature and humidity, including those machines in which the humidity can't be separately regulated. Heading 8415 20 covers air conditioning machines of a kind used for persons in motor vehicles and the heading 8415 2010 covers the said machines for buses - In the instant case, it is an admitted fact that the applicant supplies the air conditioning system, comprising of Rooftop unit, Compressor and Installation kit, as a single product for a consolidated price to a single customer, exclusively for buses. Thus the said air conditioning system for buses merits classification under heading 8415 20 10 as the same is specifically classified under the said heading. Classification of Rooftop unit, compressor and installation kit sold to single customer for a single fitting at customer end, but price negotiated and agreed separately for each unit - HELD THAT:- It could be inferred from the question that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case merits classification under tariff heading 84148011 and attract GST accordingly. - KAR ADRG 34/2022 - - - Dated:- 14-9-2022 - DR. M.P. RAVI PRASAD AND SRI. T. KIRAN REDDY, MEMBER Represented by : Sri. Anant Nyamannavar, CA Authorised Representative ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s. Eberspaecher Suetrak Bus Climate Control Systems India Pvt. Ltd., herein after referred to as 'Applicantl, Survey No.25/1, Devalapura Village, Angondanahalli Hobli, Hoskote Taluk, Bengaluru Rural, Karnataka - 560 067, having GSTIN 29AACCE3922E1ZV, have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in FORM GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and KGST Act. 2. The applicant is a Private Limited Company registered and Companies Act and has GST registrations in Bengaluru, Mumbai, Bhubaneshwar, Delhi and Kolkata. They are into manufacture of Bus Rooftop air conditioning systems which include Rooftop Unit, Compressor and installation kit. In addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is requirement of compressor and installation kits for running of rooftop unit, customer can choose to buy the compressor and installation kit separately from another vendor. b) Installation Kit: It consists of controller, hoses, wiring harness, drain hoses, hardware accessories. The main purpose of the items in kit is to facilitate Rooftop unit installation on to the bus. Customers can buy only installation kit without rooftop unit. c) Compressor: This is the heart of the complete AC system where the refrigerant is pumped to the rooftop in cycles for the heat exchange process. Cold air is not possible without a working air conditioner compressor. Some customers buy only compressor with or without modifications. Compressor is a bought out item for the company. d) GST Rates being applied by the Applicant: Sl.No. Item GST Rate Notification 1 Rooftop unit (as a standalone unit without installation kit and compressor) 28% 1/2017-CT(R) 2 Complete Bus air-conditioning syst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xclusively to the needs of passenger buses. In view of this the applicant sought advance ruling in respect of the questions mentioned at para 3 supra with regard to classification of their product/s. 10. We proceed to consider one question at a time. In this regard we invite reference to explanation (iii) and (iv) given in Notification No.1/2017-Central Tax (Rate) dated 28.06.2017, relevant to the classification of goods under GST, which are as under: Explanation . - For the purposes of this notification No.1/ 2017-Central Tax (Rate) dated 28.06.2017 ,- (iii) Tariff item , sub-heading heading and Chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 11. We consider the first question with regard to Classification of Bus air-conditioning system which comprises of Rooftop uni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spective headings; (b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of heading 8517 and 8525 to 8528 are to be classified in heading 8517, and parts which are suitable for use solely or principally with goods of heading 8524 are to be classified in heading 8529; (c) all other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548. 3. Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. 4. Where a machine (including a comb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... composite machine i.e. air condition system for a bus itself. Thus the above items either individually or in combinations, are to be classified as parts of said composite machine, as they are suitable for solely or principally with a particular composite machine i.e. air conditioning system for bus. Thus they merit classification under heading 8415.90.00 i.e., parts of air conditioning machines and attracts GST accordingly. 16. Now we proceed to examine the classification of compressor when sold individually. We observed from the Customs Tariff Act 1985 that the air or other gas compressor is classified under tariff heading 8414 and the extract of relevant entries is as under: Tariff Item Description of goods .. 8414 AIR OR VACUUM PUMPS, AIR OR OTHER GAS COMPRESSORS AND FANS; VENTILATING OR RECYCLING HOODS INCORPORATING A FAN, WHETHER OR NOTFI'TTED WITH FILTERS; GAS-TIGHT BIOLOGICAL SAFETY CABINETS, WHETHER OR NOT FITTED WITH FILTERS 8414 30 00 - Compressors of a kind used in refrigerating equipment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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